THE DEPARTMENT of Budget and Management (DBM) has directed government offices to draft their spending plans for next year, issuing the National Budget Call for 2019 under National Budget Memorandum No. 129, dated Jan. 3.

The 2019 budget will be based on macroeconomic assumptions set by the Development Budget Coordination Committee (DBCC) in its Dec. 22 meeting.

The DBCC programmed a P4.213-trillion national budget for next year, 11.83% more than this year’s P3.767 trillion.

It has capped next year’s budget deficit at P574.5 billion — equivalent to three percent of gross domestic product — 9.7% bigger than the P523.7-billion fiscal shortfall programmed for this year.

Revenues are projected at P3.134 trillion, 12.4% more than this year’s P2.789-trillion program, while disbursements on the other hand are programmed at P3.708 trillion, which is 11.92% more than this year’s P3.313 trillion.

The government assumes a 7-8% GDP growth until 2022, when President Rodrigo R. Duterte ends his six-year term, and an inflation rate of 2-4% in the same period.

The DBM said that the 2019 budget “will continue to reflect administration policies such as the President’s 0+10-Point Socio-Economic Agenda, the Philippine Development Plan and the priority programs and projects contained in the 2017-2022 Public Investment Program, and will incorporate the 2019-2021 Three-Year Rolling Infrastructure Program.”

Under next year’s proposed budget, departments and agencies can incur contractual obligations and disburse payments only for goods actually delivered and services rendered and inspected within the fiscal year, with an extended payment period of three months.

This requirement, Budget Secretary Benjamin E. Diokno said in a press release on Friday, “enforces the original intent of the appropriations law — for the budget, as it was planned and legislated — to be fully executed within the year”.

At the same time, regional and local government plans and budgets will be streamlined to ensure consistency with the priority programs and projects of the national government, the statement added.

The 2019 budget preparation calendar shows that the proposed spending plan will be presented to the President and the Cabinet for final adjustments on June 14 and will be submitted to the President on July 9 in time for submission to Congress when Mr. Duterte delivers his third state of the nation address on July 23. — Elijah Joseph C. Tubayan

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